Trekor Metals (UDM0) Q2 2026 Earnings Report

The call presented a strong operational and financial quarter with record revenue, robust cash flow and EBITDA, steady Gibraltar production, and tangible ramp-up progress at Florence. Offsetting these positives were notable near-term costs and development spending (Florence wellfield, elevated sustaining capex at Gibraltar), a $24 million hedging loss, and upcoming ore/recovery challenges in the back half of the year. Management highlighted improving liquidity and a path to delever, maintained downside price protection, and reported several contractual and byproduct benefits that support margins going forward.

Management reiterated Florence ramp-up targets and cost notes: still targeting 30–35 million lbs of cathode in 2026 with a year‑end plant run‑rate target of ~7 million lbs/month, reported Q2 C1 of US$4.72/lb (not indicative of steady state), US$24M site operating costs and US$26M of well‑field development in Q2, a fixed sulfuric acid contract at US$270/ton for 2026 and expectations of some 2027 escalation; Gibraltar guidance remains 110–115 million lbs annually after a Q2 build of 30 million lbs, Q2 total site costs of $146M, a 3.3:1 strip ratio, H1 sustaining capex of ~$48M, strong moly support (moly sales ~$26M, moly price ~$33/lb) and an average TCE next year around negative US$140/ton; financially the quarter delivered sales of ~37M lbs generating $331M revenue, cash flow from operations of $183M, adjusted EBITDA of $125M, net income of $22M ($0.06/sh) and adjusted net income $40M ($0.11/sh), liquidity of $342M (cash $186M), realized Q2 hedging loss of $24M (prior $5.40 calls) and near‑term downside protection via Q3 collars (ceilings $7.50/$8.50 with $4.75 downside) plus Q4 puts at $4.75 as the company begins to prioritize deleveraging.